| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 46.68 | 402 |
| Intrinsic value (DCF) | 3.80 | -59 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 5.38 | -42 |
FRIWO AG is a Germany-based technology company specializing in the development, manufacturing, and sale of power supply units and drive solutions. Operating in the Communication Equipment sector, FRIWO offers a diverse product portfolio, including smart components for electric drives, chargers, battery packs, power packs, and LED drivers. The company serves key industries such as tools, industrial, medical, and e-mobility, providing both standardized and customized power solutions. With a strong focus on innovation, FRIWO also delivers end-to-end contract manufacturing services for electronic assemblies. Founded in 1967 and headquartered in Ostbevern, Germany, FRIWO has evolved from its former identity as CEAG AG to become a niche player in power electronics and drive systems. The company leverages online sales channels to expand its global reach, catering to a broad customer base seeking reliable and efficient energy solutions.
FRIWO AG presents a mixed investment profile. The company operates in the growing sectors of e-mobility and industrial power solutions, which could offer long-term growth potential. However, its recent financial performance raises concerns, with a net loss of €6.25 million in the latest fiscal year and negative diluted EPS of -€0.73. While the company maintains a modest market cap of €68.4 million and a low beta of 0.128, indicating lower volatility, its high total debt of €33.04 million relative to cash reserves of €5.4 million poses liquidity risks. The lack of dividend payments may deter income-focused investors. Investors should weigh FRIWO's niche market positioning against its financial challenges before considering an investment.
FRIWO AG competes in the power supply and drive solutions market, where differentiation is driven by technological innovation, customization capabilities, and cost efficiency. The company's strengths lie in its diversified product range, serving multiple high-growth industries like e-mobility and medical technology. Its ability to provide end-to-end contract manufacturing services adds value, positioning it as a one-stop solution provider. However, FRIWO faces intense competition from larger global players with stronger R&D budgets and broader distribution networks. The company's financial struggles, including negative net income, may limit its ability to invest in next-generation technologies compared to well-capitalized rivals. FRIWO's niche focus on customized solutions could be a competitive advantage in specialized applications, but scalability remains a challenge. The shift toward renewable energy and electric vehicles presents opportunities, but FRIWO must improve profitability to capitalize on these trends effectively.